Bulletin

Jefferies parent Leucadia sees revenue drop 7.1%

ChelseyDulaney

Leucadia National Corp., the parent of investment bank Jefferies, said revenue fell 7.1% in the fourth quarter amid continued headwinds at Jefferies and its National Beef business.

For the quarter ended Dec. 31, the holding company reported a profit of $56.6 million, compared with a loss of $8.75 million a year earlier.

On a per-share basis, reflecting the payout of preferred dividends, earnings were 15 cents a share, compared with a loss of three cents a year earlier.

On an adjusted basis, which excludes the Bache business Jefferies agreed to sell, Leucadia's loss was 18 cents a share.

The holding company said its fourth-quarter results were affected by a $41 million pension settlement and a $20 million write-down on an oil field.

Revenue fell to $2.5 billion from $2.69 billion a year earlier.

Leucadia's Jefferies business has been hurt by volatility and lower prices across nearly every asset class.

In December, Jefferies said it trimmed its balance sheet and posted big drops in quarterly fixed-income trading revenue and stock trading revenue.

The retrenchment represents an about-face for Jefferies, which in recent years has been willing to step into the void in certain businesses, such as riskier debt trading and lending to highly indebted companies.

Leucadia said it expects Jefferies to perform better when markets stabilize.

At National Beef, Leucadia has been struggling with the impacts of cattle-herd rebuilding. Leucadia owns a 79% stake in the beef processing company, which sells everything from ground beef to processed hides used in leather apparel.

The company said it is starting to see positive impacts from herd rebuilding in the business.

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